What’s the best payment plan?
Machines and equipment can have a significant cost for individuals and businesses alike, so choosing the right way to pay for them is important. Here’s a breakdown of the pros and cons of each payment method that we offer so you can decide what works best for you:
Purchasing Equipment
By purchasing we mean paying for the equipment to own it outright.
Pros:
You Own It: The equipment is yours, and no more payments are needed.
Cheaper Over Time: Purchasing is usually less expensive than leasing in the long run.
Options: All machines and equipment can be purchased outright with no restriction on your options, including pre-owned units.
Freedom: You can use and modify the equipment as you like.
Cons:
High Upfront Cost: purchasing requires a big payment at the start, which can strain your budget.
Might Become Outdated: The equipment could become old and less useful over time.
Maintenance Costs: You’re responsible for the cost of all repairs and upkeep unless your machine is under warranty. However, we can help you avoid most wear-and-tear repair costs by signing up for a non-lease preventative maintenance program.
Leasing Equipment
Leasing means renting the equipment for a set time without owning it.
Pros:
Lower Upfront Costs: You don’t need to spend a lot of money right away. This especially makes sense for ice machines because the cost of 10 lb bags of ice is typically far higher than the cost of leasing a machine.
Example: If you lease an ice machine that makes 500 lbs/day at a rate of $260 per month, this averages out to roughly $8.67 per day. If you buy ice by the bag at $3 per 10 lb bag, your daily cost for 500 lbs of ice would be $150 per day. If you need ice 25 days of the month, your monthly cost would be $3,750 for bagged ice. So, by leasing a machine, you would save $3,490 per month on ice. Not to mention, you wouldn’t have to transport that ice to your location.
Stay Up-to-Date: You can easily upgrade to newer equipment when the lease ends.
Predictable Payments: Monthly costs are fixed, making budgeting easier. These payments are typically for 36 months, but other leasing periods are available.
Preventative Maintenance: Since CIMCO has full ownership of the machines, you automatically get preventative maintenance to ensure your machine is in top working order.
Cons:
No Ownership: You don’t own the equipment when the lease ends.
Costs Add Up: Over time, leasing can cost more than purchasing.
Restrictions: There may be limits on how you use or modify the equipment, as well as some restrictions on machine availability. This mostly affects some of our pre-owned machines.
Lease-Purchasing Equipment
Lease-purchasing combines leasing and purchasing. You lease the equipment but can own it after making all payments.
Pros:
Own It Eventually: Payments go toward owning the equipment.
Easier on Budget: You don’t need a lot of money upfront.
Use It Right Away: You get the equipment immediately while working toward ownership.
Cons:
Restrictions: There are important restrictions on the type of equipment that can be lease-purchased. Our team will let you know if a lease purchase is possible for your situation.
Can Cost More: Like leasing, lease-purchasing can be pricier than purchasing outright.
Long Commitment: You’re tied to the agreement (typically for 36 months), even if your needs change.
Maintenance Costs: Like purchasing, you’re responsible for the cost of all repairs and upkeep unless your machine is under warranty. You can also sign up for our preventative maintenance program on a lease purchase at a separate cost.
Choosing What’s Best
The best choice depends on your budget, how long you need the equipment, and how important it is for your business.
Leasing is great if you want lower upfront costs and the latest equipment.
Purchasing is better if you have the upfront funds and plan to use the equipment for a long time.
Lease-purchasing gives you the chance to own the equipment over time while spreading out the cost.
Think about your needs and talk to an expert to decide which option fits you best.
Important Note:
While we may offer preventative maintenance and a warranty for parts and labor, damages to the machines from accidents, abuse, or neglect are not covered.
Need more information?
Our team of experts can talk to you about payment options and answer any questions you have.